FRIDAY MARKET CLOSE: Builders rebound

The FTSE 100 index found some momentum late in the day and added 16.65 points to close at 6,499.99, although that still marks its second negative week in succession.

Michael Hewson said: “The best performing sector has been basic resources after chatter in Asia markets that Chinese authorities might be looking to announce a new stimulus program, though it has been the precious metals miners that have jumped the most with Randgold Resources and Fresnillo getting a turbo boost from a sharp rise in silver and gold prices.”

Randgold added 5.6 per cent at 5,165p while Fresnillo lifted 4.2 per cent to 1,172p. Other commodities stocks on the rise included Glencore Xstrata, up 2.2 per cent at 308.35p.

But the biggest blue chip riser was Persimmon, which recovered all the ground it gave up in the previous session amid comment from analysts that the re-rating of housebuilding stocks had been overdone. It was up 8.5 per cent at 1,190p.

In the FTSE 250 index, Barratt Developments was up 11.7p to 312.9p, Bovis Homes climbed more than 7 per cent, or 55p, to 778.5p, and Berkeley Group was up 117p higher at 2,203p.

On the downside, insurers Aviva and Standard Life were lower after Aviva was on the end of a downgrade from broker BNP Paribas. Aviva was 2.2p lower at 402.1p, while Standard Life, which has been on a steady slide since disappointing the City with figures last week, fell a further 3.3p at 346.2p.

William Hill was also among the fallers after the Treasury unveiled new proposals to ensure remote gambling operators with UK customers will pay gambling taxes from next year. Shares were down 4.6p to 422p.

Royal Bank of Scotland recovered after falling initially as Investec cut the stock to “sell”. Even though it acknowledged the bank was still on course for a sustainable recovery, it said the return to profitability would be “painfully slow”. Shares were up 2.4p to 343p.

Lloyds Banking Group was also higher, up 1.35p at 76.4p, while Barclays added 3.75p at 288.05p.